I don't get it. Schedule E, part II could include real estate rental income of a R.E. professional. Does that total go on line 43, also? Or are they talking about such income that would be somewhere else on the 1040 (i.e. other than 1040 line 17). what is the purpose of line 43?
Schedule E, line 43
Jan 24, 2013
3 Replies
See, I would have just meandered along and thrown a RE Professional's rental income on a schedule C, but then where's the fun of deciphering a schedule E?
I don't think putting this type of rental income on a schedule C would be appropriate.
Assuming you have made the determination that this is a rental activity and properly belongs on Schedule E, Line 43 tells the IRS that you have met the definition of being a real estate professional with active participation. This makes this rental activity "Active" rather than "Passive". As such, your losses would not be limited by the passive activity rules and you would not have to complete Form 8582 if you were showing a loss.
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